Trek Mining Inc. said Dec. 20 that it secured an US$85 million credit facility from Sprott Private Resource Lending LP to fund the construction and development of its Aurizona gold project in Brazil.
The facility will have a five-year term and bear a 7% interest rate plus the greater of 3-month US LIBOR or 1%. It will be repayable in quarterly installments from September 2019 to September 2022, with an option to extend by six months to March 2023.
Trek noted that the first advance of US$15 million has been made, while the subsequent tranches will be available upon meeting customary conditions.
Sprott, meanwhile, will be issued 8 million warrants priced at C$1.01 apiece for five years. There will also be a fixed US$20 per ounce monthly payment on 75% of the first 400,000 ounces of gold produced from Aurizona.
In addition to the facility, Sprott agreed to provide up to US$200 million to fund future development projects and acquisitions, which could cover the Castle Mountain project.
Trek obtained a final key permit to advance the Aurizona project in November.
